SMALL BUSINESS REVENUE EDGE COURTESY OF THE TAXMAN

Instant Asset Write-Off: Accelerating ROI on Digital Displays

For Australian small businesses, the Federal Government’s Instant Asset Write-Off (IAWO) program offers a unique opportunity to fast-track the Return on Investment (ROI) for business equipment purchases, including Adverto’s innovative digital displays.

Recognised by the Australian Taxation Office (ATO) as depreciable assets, digital displays at the bowser deliver measurable value not only in increased customer conversion and third-party revenue but also in tax savings that boost profitability.

Adverto GEN6 Display and Freestanding Display Models

How IAWO Works

Under the IAWO, eligible small businesses can immediately deduct the full cost of certain assets, provided each individual asset costs less than $20,000.

For example, if your business invests in six Adverto digital displays at $3,990 each, you can write off the full amount—an advantageous alternative to navigating the complexities of staggered depreciation schedules – as each display is considered an asset.

In the May 2024 Federal Budget, the government announced the extension of the IAWO to 30 June 2025, pending legislative approval. This extension enables businesses to upgrade equipment now, knowing they can benefit from this significant tax incentive for another financial year.

To confirm your business qualifies, consult with your accountant or tax advisor. The threshold for business is less than $10 million aggregated turnover.

ROI Benefits

Adverto digital displays are designed to drive immediate value, whether through in-store customer conversions or third-party advertising revenue.

NZ Bowsers with GEN6 displays

In-Store Sales Conversion

Data shows businesses using digital bowser displays experience an average weekly increase in in-store sales of 15% to 25%, depending on the promotions displayed. For example, a fuel station leveraging Adverto’s screens for in-store promotions can observe an immediate uptick in product movement, allowing you to measure ROI quickly based on your own sales data.

Third-Party Advertising

For businesses focusing on third-party advertising, Adverto’s digital displays can generate passive income with predictable returns. Partnering with Phoenix Media Group, we’ve seen weekly advertising revenue of up to $320 per display for eight ads, demonstrating the long-term profitability of this model.

55inch Freestanding Display

Maximising Tax and Marketing Impact

When planning your digital display investment, consider how the IAWO can dramatically improve your ROI by reducing your taxable income and freeing up cash flow. This advantage, combined with the marketing benefits of Adverto’s high-performing displays, makes now the ideal time to invest in digital signage.

Adverto’s solutions are tailored to help businesses unlock untapped potential and boost profitability.

Contact your accountant today to confirm your eligibility for the IAWO and let Adverto help you realise your business goals.